Daily Report 16 August 2022

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed flat at 70 740. Kumba Iron Ore and Impala Platinum fell just over 3%. Thungela Resources, the coal miner, which was unbundled out of Anglo American in June last year, reported a profit of R9.6 billion, compared with R351 million in the first half of 2021, on the back of strong export coal prices. The company has declared an interim dividend of R60 per share. The dividend represents a payout of 92% of adjusted operating free cash flow and is substantially higher than the company’s dividend policy of a minimum payout ratio of 30%. Absa reported a strong first half in the six months to June 2022. The bank reported a 30% growth in its headline earnings. Its half-year dividend has more than doubled to 650c a share. Absa Group CEO, Arrie Rautenbach, said the bank continued to gain market share in certain areas. In a trading update from the Spur group, the company said that it has achieved a strong trading performance for the year. Restaurant sales for the year ended 30 June 2022 are expected to be 28.2% higher than the prior financial year and it headline earnings per share (HEPS) are expected to be between 27.5% and 32.5% higher. The group’s results for the year ended 30 June 2022 are expected to be released on the 19th of August 2022. Pick ‘n Pay launched a new discount store brand called Pick ‘n Pay QualiSave. These stores will cater to customers on a tight budget and will be rebranded by February next year. BHP Group released its results for the year ended 30 June 2022. The company said that its annual profit tripled as it benefited from the sale of its petroleum business and strong commodity prices. BHP reported a net profit of $30.90 billion for its fiscal year through June, up from a profit of $11.30 billion in the same period a year earlier and declared a dividend of $1.75 a share.

SA Economy:

Cosatu plans to have a national strike against the cost of living, fuel price increases, and load shedding on the 24th of August. On Thursday, Cosatu will update the media on details and arrangements regarding the national strike. In October last year, Cosatu also had a national strike over similar concerns, but the protest had very little impact. Eskom issued a statement saying that electricity prices in the country may surge if energy regulator NERSA confirms its proposed methodology changes.

Global Economy:

Investors now await important economic figures from the U.K. later this week, which includes the unemployment rate, inflation, and retail sales, for clues on whether the British economy is heading into a recession or not. The annual inflation rate in Nigeria increased to 19.64% in July 2022 from 18.6% in June. Food inflation increased to 22%, mainly due to the rising cost of bread and cereals. The unemployment rate in the U.K. was at 3.8% in the second quarter of 2022, as expected, which is 0.1 percentage points higher than the previous three-month period. The number of people in employment increased by 160 000 over the quarter and average earnings rose 4.7%.

Global Company:

The FTSE 100 closed 0.11% higher at 7 509, driven by healthcare and energy stocks. The Hang Seng Index fell 0.54% to 19 929.Tencent Holdings plans to sell all or bulk of its stake in food delivery firm, Meituan. Shares of Meituan was down 6% on the back of that news. In China, the Shanghai Composite is up 0.07% to 3 278. The Dow Jones Industrial Average rose by 0.45% to 33 912 while the S&P 500 climbed 0.4% to 4 297, as investors ignored weak economic data from China. Warren Buffett’s company, Berkshire Hathaway said that it bought nearly 4 million more Apple shares, taking its holding to 894.8 million shares of the iPhone maker. Tesla closed 3% higher, while Apple, Alphabet, and Microsoft gained between 0.3% and 0.6%.


Gold is down 0.69% to $1 779/oz, while Platinum is lower by 2.71% to $927.30/oz. Brent crude was 3.69% lower at $93.81 a barrel.


The rand traded at R16.43 against the US Dollar, R19.79 against British Pound and R16.71 against the Euro. The Euro is slightly weaker against the US Dollar to trade at $1.157.



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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1779.87 -0.69% USD/ZAR 16.43 Top40 64022.00 0.04%
Platinum 927.30 -2.71% GBP/ZAR 19.79 Dow 30 33912.44 0.45%
Brent 93.81 -3.69% EUR/ZAR 16.71 S&P 500 4297.14 0.40%
Copper 3.62 0.55% EUR/USD 1.0157 FTSE 7509.15 0.11%
Palladium 2130.52 -4.17% USD/JPY 133.43 DAX 13816.61 0.15%
Iron Ore 109.50 -3.20% BITCOIN 24016.60 Shanghai 3277.64 0.06%
Source:  Moneyweb & Investing.com